How Mali’s Mining Reforms Are Funding a New Push for Infrastructure

Mali is seeking to turn its mineral wealth into long-term economic development, using sweeping mining reforms to increase state revenues and channel more money into infrastructure.

The government is considering how to raise more than $880 million for critical infrastructure after expanding state participation in mining and increasing the revenues collected from mining companies.

The strategy reflects a broader shift in Mali’s approach to its natural resources: rather than allowing mining revenues to leave the country with limited economic benefits, the government is seeking greater national control and a larger share of the value generated from its mineral wealth.

Mining Revenues Could Unlock $880 Million

At the centre of the infrastructure push is Mali’s Energy, Water and Transport Infrastructure Development Fund.

Created in 2023, the fund receives revenues from the mining sector, including 10% of ad valorem taxes and 1% of quarterly turnover during the first five years of a mining permit, rising to 2% thereafter.

Following a meeting of the fund on July 31, Finance Minister Alousseni Sanou said it generates at least 50 billion CFA francs annually, equivalent to roughly $88 million.

The government believes this predictable revenue stream could support borrowing of up to 500 billion CFA francs, or more than $880 million, for infrastructure projects.

The approach effectively seeks to use recurring mining revenues to finance long-term investments in infrastructure, including energy, water and transport.

If successfully implemented, it could allow Mali to convert part of its mineral wealth into assets that support broader economic activity.

A Bigger State Role in Mining

The infrastructure strategy is closely connected to Mali’s 2023 mining reforms.

Under the new mining code, the state receives a free 10% stake in new mining projects. Foreign mining companies must also transfer 5% of their equity to Malian private investors through a state-owned intermediary.

This gives national interests a minimum combined stake of 15%, while the state can potentially acquire an additional 20%.

The reforms represent a significant change from the previous framework, which limited state participation and provided fewer opportunities for local investors.

Mali’s government has argued that the changes are necessary to ensure that the country’s mineral wealth delivers greater benefits to the Malian economy.

The results have already been significant in terms of government revenue.

Mining revenues reached approximately $1.47 billion in 2024, according to figures cited in the source material, representing a substantial increase compared with the period before the reforms.

Recovering Billions in Mining Arrears

The government’s tougher approach has also involved recovering unpaid or disputed revenues from mining companies.

Following an audit of mining operations, authorities identified what they described as significant shortfalls in payments to the state.

The government established a commission to recover those revenues.

The process resulted in major disputes with several international mining companies, including Barrick Mining.

The government took an aggressive position during its dispute with Barrick, including issuing an arrest warrant for the company’s chief executive and placing the Loulo-Gounkoto mining complex under temporary state administration.

Barrick ultimately settled the dispute, paying $438 million and agreeing to transition to Mali’s new mining framework.

Other companies, including B2Gold, Allied Gold, Endeavour Mining, Kodal Minerals, Resolute Mining and Ganfeng Lithium, also agreed to comply with the revised regime.

By the end of 2025, Mali’s government said it had recovered approximately $1.2 billion in arrears from mining companies.

The money has strengthened the government’s fiscal position and provided additional resources for development.

Bringing Artisanal Gold into the Formal Economy

Industrial mining is only part of Mali’s gold economy.

The country also has a large artisanal and small-scale mining sector, involving nearly two million people across hundreds of sites.

For years, a significant share of artisanal gold production has reportedly moved through informal channels and smuggling networks.

Estimates cited in the source material suggest that between 30 and 57 tonnes of gold, worth approximately $2 billion to $3.8 billion, may leave Mali through unofficial channels each year.

Bringing more of this production into the formal economy could significantly increase government revenue.

In March, Mali’s Council of Ministers adopted legislation establishing the Malian Office of Precious Substances, which became operational in July.

The institution is intended to formalize artisanal mining and create more effective mechanisms for purchasing and regulating gold produced by small-scale miners.

If successful, the initiative could increase transparency while directing a larger share of artisanal mining revenue into the formal economy.

Mining Revenue and Local Development

Mali is also seeking to ensure that mining communities benefit more directly from the country’s mineral wealth.

In March 2026, the government redistributed approximately $33 million in mining revenues to municipalities and local administrations in mining-affected areas and other underdeveloped regions.

This is important because mining-led development can create significant tensions when local communities bear the environmental and social costs while receiving limited economic benefits.

Directing more mining revenue toward local infrastructure and public services could help address that imbalance.

It could also strengthen public support for the mining sector.

From Gold to Infrastructure

Mali’s strategy reflects a broader question facing resource-rich African economies: how can countries turn finite mineral resources into lasting economic development?

Gold generates substantial export revenue, but gold reserves are ultimately exhaustible.

Infrastructure, by contrast, can continue generating economic value long after a mine closes.

Roads can connect farmers to markets. Electricity can support manufacturing and processing. Water infrastructure can improve public health and agricultural productivity. Better transport networks can reduce the cost of doing business.

Using mining revenue to finance these assets could therefore help Mali diversify its economy beyond mineral extraction.

The challenge will be ensuring that borrowing against future mining revenues remains financially sustainable and that the resulting infrastructure projects deliver measurable economic returns.

A New Model for African Mining?

Mali’s approach is likely to attract attention across Africa.

Many resource-rich countries have struggled with a familiar problem: significant mineral exports coexist with inadequate infrastructure, high poverty levels and limited industrial development.

Mali is attempting to change that equation by increasing the state’s participation in mining, recovering unpaid revenues, formalizing artisanal production and directing a portion of mining income toward infrastructure.

The approach is not without risks.

A tougher regulatory environment can increase tensions with international investors if rules are unclear or implementation becomes unpredictable. Mining projects also require substantial long-term capital, technical expertise and stable operating conditions.

For Mali, the challenge will be finding the balance between securing a greater national share of mineral wealth and maintaining an investment environment capable of attracting the capital and technology needed to develop the sector.

Turning Mineral Wealth into Development

Mali’s mining reforms represent a significant shift in how the country views its natural resources.

The objective is no longer simply to increase gold production or attract mining investment. It is to capture more of the economic value generated by mining and use it to finance broader national development.

The proposed $880 million-plus infrastructure financing plan is perhaps the clearest expression of that strategy.

If mining revenues can be converted into reliable electricity, better roads, improved water systems and stronger local economies, Mali could begin turning finite mineral wealth into longer-lasting economic assets.

The success of the strategy will ultimately depend on transparency, sound financial management, effective regulation and the quality of the infrastructure investments themselves.

But the underlying principle is clear: Mali wants its mining wealth to build more than mines. It wants mineral revenues to help build the country’s future.